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How the Abbott government will protect Australia’s social insurance system

October 29, 2021 Comments Off on How the Abbott government will protect Australia’s social insurance system By admin

The Abbott government’s social policy agenda is already being threatened by Labor’s promise to scrap the social insurance program, known as Aids+, which provides crucial support for the poor.

The Turnbull government is preparing to roll back the health insurance system in a move that could cost $400 million in Medicare savings and hundreds of thousands of jobs, according to independent think-tank the Commonwealth Bank.

It is expected to announce a $40 million increase to the disability pension fund in the coming weeks and then increase the Medicare benefit to cover disability payments for the next three years.

“I think the plan is going to be a major one,” Commonwealth Bank chief economist David Mascarenhas said.

Mr Mascarelli said the government could save $4.5 billion in Medicare payments by scrapping the social welfare system, which has provided the bulk of funding for the disability benefit.

He said if the plan goes ahead, the benefits for disability recipients would be halved, which would affect people with a disability who are already struggling to access the social security system.

“If they are able to get the benefits and that is the goal, then they are not going to have the burden of the disability,” Mr Mascared said.

The Commonwealth Bank estimated the disability benefits in the next financial year would be about $60 billion, or a saving of $4 billion in the current financial year.

Labor wants to reduce the benefits to the social safety net, but would need to raise the income threshold to qualify for the benefits.

Social Security Minister Scott Morrison told Parliament last month he would seek changes to the Disability Insurance Scheme to allow people with severe disabilities to continue receiving disability benefits.

The government said the welfare changes were to be announced over the coming months.

Under the proposed changes, the age of eligibility would increase to 65, from 64, to make it easier for people to access Aids+ for a period of five years.

The changes would also allow people to qualify on a case-by-case basis.

There are now 1.1 million people who were previously eligible for Aids+.

A total of 3.9 million people receive Aids support and an additional 4.5 million people received it as part of the Disability Support Pension.

But the government has said the plan will not affect the benefits available to people on the Aids pension.

People on the pension are eligible for social security payments that include the disability insurance benefits.

“There is no change in the eligibility criteria,” Mr Morrison said.

“We will not change the AIS pension eligibility criteria, the AIDS benefits are the same.”

The ABC has sought comment from the Department of Health.

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